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China's Dual Power: Industrial Strength Amid Economic Weakness

China's Dual Power: Industrial Strength Amid Economic Weakness
Paradox of Chinese power · thestatesman.com

China is a huge factory that makes a lot of solar panels, electric cars, batteries, and special minerals.

But its own economy is in trouble because a big part of it is real estate, which has lost a lot of value.

The government has borrowed a lot of money to build things that aren’t used, and now it can’t pay back easily.

Because Chinese factories can make things cheaply, they sell them all over the world, which makes other countries depend on China.

This gives China some power, but it also hurts its own people.

The United States should focus on protecting important technology, work with allies like India, and give other countries good alternatives to China’s help.

Key facts

Global manufacturing dominance
Over 80% of world solar, leading EV, battery, and rare earth production
Domestic debt burden
Local government financing vehicles have created trillions in non‑performing loans
Property market share
Real estate historically accounted for nearly 30% of China’s GDP
Export strategy
Subsidized goods flood global markets, creating supply‑chain dependencies
U.S. policy focus
Target tech chokepoints, strengthen Quad/AUKUS, offer alternative infrastructure

Sources

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